Mining stocks lead FTSE downhill.(Business)

The London market tumbled into the red yesterday dragged lower by mining and oil companies as they felt the pinch from falling commodity prices.

The mining sector dominated the FTSE 100 Index fallers board as the price of copper and gold dipped while oil majors BP and Shell suffered as crude eased.

The gloom spread to the wider market in London and the Footsie closed 28.5 points off at 5850.8.

Jimmy Yates, trader at CMC Markets, said: "Another sharp drop in gold prices has hit the mining stocks with the sector dominating the FTSE's worst performers on the day as a result, while a similar situation with oil has also seen the

likes of Shell and BP come under some sustained pressure through the session."

Vedanta Resources topped the fallers' board with a loss of 82p to 1239p or 6%, and it was followed down by rivals BHP Billiton off 48p to 934p, Rio Tinto 128p lower at 2544p, and Kazakhmys which was down 60p at 1226p.

The weak price of crude hurt major oil stocks BP and Royal Dutch Shell which fell 8p to 583p and 29p to 1823p respectively.

But there was better news for mobile phone giant Vodafone which gained 1.25p to 114.75p after it announced a tie-up with BT to provide broadband internet connections to its 16.2 million UK customers. BT shot to the top of the risers board with a gain of almost 2% - or 4.75p to 253.25p.

Scottish & Southern Energy was on the front foot after reports it had held talks over a possible pounds 20 billion tartan tie up with Scottish Power. Shares in SSE gained a penny to 1239p following the news, but Scottish Power did not fare so well - down 4p to 625.5p.

In the FTSE 250 Index, casinos operator Stanley Leisure was up 20.5p to 875.5p after it agreed to be taken over by Malaysian gaming giant Genting International for pounds 639 million or 860p a share.

But it was a disappointing session for Forth Ports after a warning over its second half performance overshadowed a 19% rise in half-year pre-tax profits.

Shares in Forth dipped 4% or 71p to 1774p yesterday.

Online gaming firm Sportingbet was on the slide with its shares down 40% or 95p to 144p as it resumed trading following the arrest of its chairman in the United States under gambling laws.

Silver Spoon owner Associated British Foods slipped early on after it admitted tough trading at its sugar arm coupled with soaring energy costs would eat into second-half profits.

But investors were cheered by signs of profits growth at its budget clothing arm Primark and sent the shares 0.5p higher to 820p.

The day's biggest blue chip risers were BT up 4.75p to 253.25p, Sainsbury's ahead 5.25p at 367.75p, and Prudential rising 8p to 591p.

The day's biggest blue chip fallers were Vedanta Resources down 82p to 1239p, BHP Billiton off 48p to 934p, and Rio Tinto closing down 128p at 2544p.